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Call tariffs in India will rise if the government raises levies on spectrum allocated to telecom operators, says Sunil Mittal, chairman of Bharti Airtel. In an interview to ET NOW, Mittal advises the government to assess the industry's health before it decides to change its telecom policy. Excerpts:

What were the highlights of your just-concluded meeting with Telecom Minister Kapil Sibal?

We discussed the need to have a stable regulatory policy and, in particular, the long-overdue New Telecom Policy 2012. We told him about certain issues that are plaguing this industry. The mobile telephony industry is truly in crisis, there is no question about that.

What is his take on spectrum charges?

It is a given that there will be some spectrum charges. The question is how much? But that is not a discussion we could have had with the minister. We told the minister that when the government looks at the exchequer, it must also look at the health of the industry. There needs to be a balance between what the government can extract from this industry and what the industry can pay.

What's the worst-case scenario for a company like yours?

If the government decides to levy very high spectrum charges, the outcome will be high tariffs.

So, the consumer will have to pay?

Someone has to pay. We are, after all, intermediaries. The industry's growth after the NTP 1999 was one of the most successful telecom stories anywhere in the world with customers enjoying fantastically low tariffs. If there is going to be a change in the policy and the government wants to extract a hell lot of money for spectrum, then we should prepare for high tariffs.

What kind of increase in tariffs one could expect?

I would say any increase that will make an economic sense to run this capital-intensive business. My own company invests $2-3 billion a year just in India. So far, we have invested more than $20 billion. Other companies also do the same. So if this kind of money has to go in, it must result in some form of economic yield for the companies.

Is Airtel ready to deal with 3G breakeven should the roaming ruling goes against you?

The 3G intra-circle roaming issue has nothing to do with the breakeven because all of us have paid way over the top for acquiring 3G spectrum. The tariffs are high for data precisely for the reason that the 3G bidding went too high.

I cannot believe the speeds at which I am able to use my fancy phones in Davos, but the consumer in India is frustrated. When will we see better services?

Wherever you have 3G, the speeds are as good. The technology does not differ between Switzerland and India. Operators over here have three carriers, which means 15 MHz. In India, it is only 5 MHz. Currently it is not a problem. But as the traffic increases, the government will have to review giving more 3G spectrum.